Social capital and trade credit
© 2018 Elsevier Inc. We investigate the relation between social capital and firms’ use of trade credit in the USA. We also estimate the extent to which social capital is both directly and indirectly related to firms’ use of trade credit. Using a large sample of US data, we find robust evidence that...
| Main Authors: | , |
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| Format: | Journal Article |
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Elsevier BV
2018
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| Online Access: | http://hdl.handle.net/20.500.11937/73448 |
| _version_ | 1848763016035696640 |
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| author | Hasan, Mostafa Habib, A. |
| author_facet | Hasan, Mostafa Habib, A. |
| author_sort | Hasan, Mostafa |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2018 Elsevier Inc. We investigate the relation between social capital and firms’ use of trade credit in the USA. We also estimate the extent to which social capital is both directly and indirectly related to firms’ use of trade credit. Using a large sample of US data, we find robust evidence that firms headquartered in high social capital counties use less trade credit: a finding that is both statistically and economically significant. Our analysis also reveals that social capital, both directly and indirectly (through the financial constraints channel), influences firms’ use of trade credit. An additional analysis reveals that the county-level social norms provide the mechanism through which social capital influences firm-level trade credit. Our results are robust to alternative measures of social capital and trade credit, and are not driven by omitted variable bias or endogeneity issues. Overall, our results show that county-level social capital influences organizational outcomes. |
| first_indexed | 2025-11-14T10:56:45Z |
| format | Journal Article |
| id | curtin-20.500.11937-73448 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:56:45Z |
| publishDate | 2018 |
| publisher | Elsevier BV |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-734482018-12-13T09:35:50Z Social capital and trade credit Hasan, Mostafa Habib, A. © 2018 Elsevier Inc. We investigate the relation between social capital and firms’ use of trade credit in the USA. We also estimate the extent to which social capital is both directly and indirectly related to firms’ use of trade credit. Using a large sample of US data, we find robust evidence that firms headquartered in high social capital counties use less trade credit: a finding that is both statistically and economically significant. Our analysis also reveals that social capital, both directly and indirectly (through the financial constraints channel), influences firms’ use of trade credit. An additional analysis reveals that the county-level social norms provide the mechanism through which social capital influences firm-level trade credit. Our results are robust to alternative measures of social capital and trade credit, and are not driven by omitted variable bias or endogeneity issues. Overall, our results show that county-level social capital influences organizational outcomes. 2018 Journal Article http://hdl.handle.net/20.500.11937/73448 10.1016/j.irfa.2018.10.002 Elsevier BV restricted |
| spellingShingle | Hasan, Mostafa Habib, A. Social capital and trade credit |
| title | Social capital and trade credit |
| title_full | Social capital and trade credit |
| title_fullStr | Social capital and trade credit |
| title_full_unstemmed | Social capital and trade credit |
| title_short | Social capital and trade credit |
| title_sort | social capital and trade credit |
| url | http://hdl.handle.net/20.500.11937/73448 |